ugen willeyplus.com/edugen/iti/main.uni Return to Blackboard LUS Kimmel, Account
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ugen willeyplus.com/edugen/iti/main.uni Return to Blackboard LUS Kimmel, Accounting: Tools for Business Decision Making, 5e Help l System Announcements (2 Unreadm Brief Exercise 4-14 The income statement for the Four oaks Golr club Inc. for the month ended July 31 shows Service Revenue s ies and Wages Expense $9,520; Maintenance and Repairs Expense s3,080, and Income Tax Expense The statement of retained earnings shows an opening balance for Retained Earnings of s20,750 and Dividends $1,980, Prepare closing journal entries, (credit account titles are automatically indented when the amount is entered. Do aot indent manually.) Date Account Tties and Explanation July 31 (To close revenue account study July 31 (o close expense accounts) July 31 (o close net incomel(loss) to retained earnings) July 31 (To close dividends to retained earnings) Stow LIST or AccouNTsExplanation / Answer
The revenue and expense accounts will be adjusted against the income summary account (as shown by 1st and second journal entries respectively). The difference between total revenue and total expenses will be transferred to retained earnings at year end (as shown by 3rd journal entry). The amount of dividends will be adjusted against retained earnings (as shown by 4th journal entry).
The journal entries are as follows:
Date Account Titles and Explanation Debit Credit July 31 Revenue $16,760 Income Summary $16,760 (To close revenue account) July 31 Income Summary $13,970 Salaries and Wages Expense $9,520 Maintenance and Repairs Expense $3,080 Income Tax Expense $1,370 (To close expense accounts) July 31 Income Summary (16,760 – 13,970) $2,790 Retained Earnings $2,790 (To close net income/loss to retained earnings) July 31 Retained Earnings $1,980 Dividends $1,980 (To close dividends to retained earnings)Related Questions
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